The long oil drag on inflation is going into reverse. The base effect looks powerful.

Lowflation expedition log, Dec. 1: We have reached oil base effect camp. The foothills lie behind; ahead is the mountain. The peak looks lofty indeed. December 2015 and January 2016 saw a precipitous slide in oil prices that extended the energy drag on inflation. Brent crude fell from around $45 a barrel to a low […]